What is Accident Death Insurance

What is accident death insurance, you ask? Accident death insurance, sometimes called "accidental" life insurance, "accidental death" insurance, or "accidental death and dismemberment" insurance (which is partly also health/disability insurance) can be a rider on your current policy that has special conditions for paying out in the case of a sudden death caused by a totally unforeseeable accident. Typically, this payment is in addition to the face amount of the policy that would be paid out if the insured died of natural causes such as old age or an illness contracted after the policy was in force. This additional payment is typically 1.5x or 2x the death benefit on the main policy.

The insurance industry defines accidental death insurance as "any death strictly due to accident." So, deaths due to war, deaths form illegal activities like dealing drugs and getting shot to death, or deaths that result from personal pursuits considered inherently dangerous like shark cage diving will not be covered. Airplane crashes, car accidents, and these days maybe even terrorist attacks would be covered.

Usually this rider also runs out after a certain age, typically age 70. However, often these riders will pay out if the insured dies for some time after the accident occurs--typically one year--as long as it can be proved that the death was directly instigated by the accident.

But accident death insurance can also be purchased on a very temporary basis if you're going on a trip. Especially with different vacation packages, you can find accident death insurance that you can buy as part of the entire price. You might be going scuba diving; you might be going on a ski trip; you might be going on a trans-oceanic flight or cruise; you might decide that you'd love to scope out wolves in Saskatchewan province; you might even be going on a two-week tour by car. If you haven't already got a life insurance policy with a rider, you can buy temporary accident death insurance to cover your risks (and you might wish to purchase the temporary insurance anyway).

Sometimes these policies also cover you financially in the event of the accident-caused death of your spouse or a child on that same trip with you.

The Features of Accidental Death & Dismemberment Insurance:

Low Premium

An individual life AD&D insurance could have a monthly premium as low as $7.95 a month. For that premium, the benefits give are usually $100,000 for dismemberment and $200,000 or more for death. Paying for insurance with this face value has never been this low.

High Death Benefits Limit

Death benefits are actually computed to as twice as the dismemberment benefits, although some insurer just treat both cases under the principal sum. Death benefits are paid directly to survivors. Some insurance companies even pay as high as $1,000,000 in death benefits, but it depends upon the insurance plan selected and the manner of death.

Eligibility for a Family Plan

Whereby if an insured does not expire during the term for which the insurance is taken he has the option to renew it after that period. It needs to be understood that he will be required to pay a higher amount of premiums on such renewals. Even after such renewals the insurance amount will be paid to the dependents of the insured after his death.